Once an MSP has defined its managed compliance services, the next challenge is pricing them in a way that is attractive to clients and sustainable for the business. Underpricing leads to burnout; overpricing makes deals hard to close.

A thoughtful pricing model considers effort, risk, perceived value and the client's ability to pay.

Summary and key takeaways

• 1Start from effort and cost, then adjust for value and risk.
• 2Avoid making every engagement completely custom.
• 3Tiered packages make buying decisions easier for clients.
• 4Clear boundaries prevent scope creep from killing margins.
• 5Regular reviews keep pricing aligned with reality.

Common pricing structures

MSPs typically use one or a mix of: - Fixed‑fee packages for well‑defined scopes. - Per‑entity or per‑user pricing for ongoing monitoring. - Time‑and‑materials for bespoke or unusual work. - Retainers for advisory and on‑call support.

Each structure has trade‑offs. Fixed fees give clients predictability but require good control of scope. Per‑entity pricing scales with client size but needs clear unit definitions.

Designing tiers that make sense

A simple three‑tier structure might be: - Essential: core assessments and basic reporting. - Enhanced: recurring reviews, remediation planning and vendor checks. - Strategic: framework alignment, board reporting and audit support.

Higher tiers include more touchpoints, deeper analysis and strategic input, not just more checklists.

Using tools to understand effort

An assessment engine can show: - Average time to complete engagements by type. - Which tasks consume the most hours. - Where automation meaningfully reduces effort.

These insights feed directly into pricing discussions. If a certain type of review consistently blows past estimates, something needs to change in either process or price.

Communicating value to clients

Price conversations are easier when clients see: - Reduced internal effort and distraction. - Faster responses to customers and regulators. - A clearer picture of risk and priorities. - Support during stressful events such as incidents or audits.

Make these outcomes explicit in proposals and reports.

Periodically revisiting your model

Markets change. So do expectations about what "good" looks like. Schedule periodic reviews of: - Margins per service line. - Win/loss reasons in sales. - Feedback from delivery teams and clients.

Use those reviews to refine tiers, add options or retire unprofitable offerings. A living pricing model keeps your compliance services healthy and sustainable.